Cambrex To Acquire Halo Pharma for $425 Million
Cambrex, an East Rutherford, New Jersey-based contract manufacturer of small-molecule active pharmaceutical ingredients (APIs), has agreed to acquire Halo Pharma, a Whippany, New Jersey-headquartered contract development and manufacturing organization (CDMO), for approximately $425 million. Halo Pharma is currently majority-owned by SK Capital Partners, a private investment firm.
With the acquisition of Halo Pharma, Cambrex will enter the finished-dosage form CDMO market. Halo Pharma provides drug-product development and commercial manufacturing services, specializing in oral solids, liquids, creams, sterile, and non-sterile ointments. Halo’s core competencies include developing and manufacturing complex formulations, products for pediatric indications, and controlled substances.
Halo Pharma operates two GMP-compliant facilities located in Whippany, New Jersey and Montreal, Québec, Canada, comprising 430,000 square feet of plant space. Halo’s 450-person workforce will join Cambrex’s 1,200 employees across the US and Europe.
Cambrex will acquire Halo Pharma for $425 million in total cash consideration. The acquisition will be funded with a combination of cash on hand and borrowings against Cambrex’s $500-million senior credit facility.
Completion of the transaction is subject to customary closing conditions and is expected to occur during the third quarter of 2018.